The app, jointly developed between ANZ and Deloitte Digital, was "very inexpensive", according to the bank's general manager of innovation, Peter Dalton, who believes the app is a "differentiator" for ANZ, stating: "From what we've seen, we're the only major bank to provide a merchant app."

Dalton declined to comment on whether the app would also be available on the soon-to-be-released Apple iPad; however, he did state that the company was constantly on the look out to make banking simpler.

Published: April 16, 2010 -- 06:10 GMT (23:10 PDT)

Photo by: Jacquelyn Holt/ZDNet Australia

Caption by: Jacquelyn Holt

The trial began last month with three merchants — Fisher & Paykel, a mobile suit tailor and a mobile car detailer — with plans to expand the trial to 20 merchants.

Fisher & Paykel's Brant Sargeson and Randolph Khoury demonstrated the app's functionality, stating that over 80 per cent of Fisher & Paykel's payments for home visits are made by credit or debit card.

Published: April 16, 2010 -- 06:10 GMT (23:10 PDT)

Photo by: Jacquelyn Holt/ZDNet Australia

Caption by: Jacquelyn Holt

ANZ is monitoring merchant interactions with the app, and has provided a dedicated support line to deal with any problems. Though Dalton has said that so far the bank had received "zero support calls through the pilot".

The bank also plans to use merchant and customer feedback following the trial to make any necessary alterations to the app before it is made available free in Apple's app store around the middle of this year.

Published: April 16, 2010 -- 06:10 GMT (23:10 PDT)

Photo by: Jacquelyn Holt/ZDNet Australia

Caption by: Jacquelyn Holt

The app itself requires a log-in for merchants, assigned by ANZ. The application can process transactions from credit and debit cards in the same way as internet purchases, which means no signature is required, with the transaction details sent automatically to both the merchant and the customer via email. Refunds are also available via a dedicated refund button within the transaction details. For the duration of the trial, a limit of $1000 will be in place; however, Dalton said this amount could be revised after the trial's completion and negotiated by individual merchants.

Published: April 16, 2010 -- 06:10 GMT (23:10 PDT)

Photo by: Jacquelyn Holt/ZDNet Australia

Caption by: Jacquelyn Holt

The app connects to ANZ's secure back-end servers, via Wi-Fi or 2G/3G internet. For security purposes, the app does not store customer details, has a self-time-out function, and cannot be loaded onto jailbroken iPhones. ANZ has also implemented the capability to block usernames in the event of loss or theft of merchants' iPhones.

Published: April 16, 2010 -- 06:10 GMT (23:10 PDT)

Photo by: Jacquelyn Holt/ZDNet Australia

Caption by: Jacquelyn Holt

Peter Dalton stepped into the GM innovation role in December 2008, with the intention of gaining further insight into customers' needs and develop new processes to simplify transactions. His move left a vacancy in the role of chief information officer, which was filled in February this year by Anne Weatherston.

Other companies, like Australian vendor Mint Wireless, have also developed similar technologies, including ProcessAway, which retails in the app store for US$19.99, and Square, which includes a card reader device to process swipe transactions.

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ANZ is monitoring merchant interactions with the app, and has provided a dedicated support line to deal with any problems. Though Dalton has said that so far the bank had received "zero support calls through the pilot".

The bank also plans to use merchant and customer feedback following the trial to make any necessary alterations to the app before it is made available free in Apple's app store around the middle of this year.